Composite Index Daily Technical Analysis 30/06/2005

Composite Index ended lower on Thursday trading with a lost of 1.66 points. As shown in the chart, Composite Index fall below the 890.20 WinChart Automatic Fibonacci Retracement line, therefore, 890.20 is currently the resistance for Composite Index. The next support for Composite Index can be found on the 878.22 WinChart Automatic Fibonacci Retracement line. (Study A)

10 days Bollinger Bands opened another 14%, indicating that the current market volatility has increased. While the Composite Index is now situated below the middle band, therefore, immediate outlook for KLCI is negative. Nonetheless, total market volumeon Thursday had retreated 3.1%, staying below the 40 days VMA line, indicating that the market participation is low. (Study B)

As indicated in C, both %K and %D of Stochastic are at the oversold condition, in which both lines are situated below the 10% level. This suggests that the Composite Index is likely to have a technical rebound. However, a technical rebound does not necessary suggest a reversal, for the short-term market sentiment is still bearish. (Study C)

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